🧵The recent increase in people’s private consumption in the eurozone masks the different developments across individual consumption components. The rise was mainly supported by consumption of services, while consumption of goods fell https://www.ecb.europa.eu/pub/economic-bulletin/focus/2023/html/ecb.ebbox202208_03~2ca54e2b1b.en.html #EconomicBulletin
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This recovery in private consumption resulted from several factors, including the loosening of pandemic-related restrictions and the easing of supply bottlenecks. But the sharp rise in energy prices hurts purchasing power and spending among households
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Energy shocks had a different impact on individual consumption components. They barely affected services consumption, but they had a larger negative effect on the consumption of goods. High energy prices will continue to weigh on households’ purchasing power in the near term
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